Emerging Market Debt: All Grown Up

26 Aug 2013

Sergio Trigo-Paz
Head of BlackRock’s Emerging Markets Fixed Income team

Ernesto Bettoni
Product Strategist, BlackRock’s Emerging Markets Debt team

Emerging market debt has grown up in the past decade. Once viewed as an exotic investment, it is now becoming mainstream — and with good reason. According to BlackRock’s emerging market debt experts, this relatively new asset class offers the potential for higher income, long-term portfolio growth and enhanced diversification.

Highlights

Emerging market debt combines attractive yield and return opportunities with low historical correlation to traditional areas of the bond market.
Relatively strong economic growth and fundamental changes in emerging markets over the past decade have improved the quality and stability of emerging market debt.
With such a broad range of opportunities and risks, deep research, analysis and discipline are crucial to building the right portfolio.

An allocation to emerging market local debt is for investors who are:

seeking income and capital appreciation
searching for an alternative to traditional core bond strategies containing heavy interest rate risk
underweight emerging market hard currency debt

Emerging Markets Credit Ratings' Steady Rise

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